Custom «Business Management» Essay Paper Sample

Business Management

The objective of this assignment is to provide an additional explanation to the chosen topics of concern. The topics to be discussed further involves the introduction to areas being investigated by the original report: providing a deep description that explains on the major differences between individual and collective contracts, a clear and simple description about business forecast and future developments, that is, paying professional tribute to accountant advice about  growth of the business and the struggles it indulges in order to prevail in the automotive industry ,moving forward with the assignment, a  short and precise paragraph that unravels how trade facilitation to customers may be conducted will be looked at.

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The last topic to be handled is the full explanations about unraveling the idea behind choosing premises ownership to leasing.

The objective of an automotive business, just like any other business, is to make profits (Mehta, Ghosh, Alkafaji & Nandakumar, 2010). It can achieve this state by examining both internal and external factors affecting its management, these factors include: automotive bodies and membership, contracts, taxation, marketing, clean and waste services, legal services, accounting, finance and bank loans.

Differences between Collective and Individual Contracts

In collective contracts an employee reserves the rights of negotiation, termination and those that demand for salary increments, with labor unions. This means that the employee would be expected to enter into an agreement with a labor union in order to be served fully. The labor union becomes responsible for matters affecting employee’s performance while at work, on the other hand, individual contracts arises when the employee negotiate for the terms of  employment and incase there is a breach of contract, the employee is expected to fully participate in issues regarding the matter. This means that he or she would be liable for everything and would be expected to practice personal accountability. It’s for this reason that the automotive business should be completely aware of the agreements options available before embarking on employment contracts (Rahim, 2010).

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Business Forecast and Future Developments: Accountants’ advice

The major objective of an accountant is to provide free and fair financial statements for the purpose of decision making. The different users of the financial statements from the automotive business industry are greatly interested with the running of the entire business. Those interested include: the managers, stakeholders, the government and most of them all potential investors. A financial statement that is faithfully represented and is relevant evokes potential investors to invest in MO2FIX. For MO2FIX to grow and develop, it has to put into use the accounting information provided in determining if the capital base of the entity is at a stable position. MO2FIX has to allow for adjustments to be made in its capital structure whenever the need arises.

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Trade Finance Facilitation to Customers

MO2FIX need to understand that its customer base forms one of its major assets and each and every customer should be attended to, accordingly. For the business to run effectively it would be required that the entity becomes open enough to accommodate the different modes of payments used by customers to pay for services rendered.

The entity should understand that not all of its customers possess the ability to pay in cash. Their would be those who will prefer paying in installments while others request for credits, it would be irrational to close doors for such customers instead it would be wise if MO2FIX adjusts its payment structure to accommodate all these mode of payments.

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A department; to deal with, checks, cards and other forms of online money transfer should be put in place to serve these customers. The entity should understand that the need for embracing positive changes acts towards bringing growth and stability.

The Services Provided by Banks to Facilitate Payments

Banks in recent years have found out that they have been providing loans to customers who end up not paying the loans due to different reasons. Banks therefore perceived the need to engage itself towards helping its clients in not only pay in time but also in an easier and friendly way. For instance, they decided to charge interests on loans using different criteria altogether: the on loans were greatly dependent upon the negotiation between the bank and the customer (Melville, 1999). For a very long time the automotive industry overlooked these offer and ended up paying more interests than it could have paid.

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In order to save MO2FIX from this kind of exploitation, it would be wise for the entity to seek debt capital in banks that allows for flexibility. Another approach that banks undertake to facilitate the payments of loans is by offering investment educations to its clients. The automotive industry has been in the dark for so long but then this kind of service facilitates easier payments thus benefitting both the bank and the customer. MO2FIX   should always embark on a mission to evaluate the different kinds of services offered by banks before choosing to borrow lest it risks being declared bankrupt especially in this economic recession being experienced everywhere.

Premises Ownership and Lease Arrangements

Premises ownership refers to a situation whereby an entity is considered the legal owner of a particular land and building upon which it runs its business while in lease arrangements, the entity decides to sell and lease back the entire property so that it would be paying rent accordingly (Collins & Keith,2010).

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When an entity owns a premise it basically means that it enjoys the possession of acquiring land and the buildings in it. In leasing the entity becomes the leasee while the owner is the leaser and the arrangement is made when the entity is allowed to lease the building for a certain period of time which can be renewed. When MO2FIX is looking into increasing its capital base then it can lease its building and land but if its stable then ownership is the best way to go.

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